Good commentary asf,KZL copper does not currently fit into their...

Good commentary asf,

KZL copper does not currently fit into their strategy. (too small and too high cost). A number of things would need to occur for OZL to buy the KZL copper assets

1. OZL could see the ability to grow the copper production to about 50,00tpa.
2. OZL could see the ability to reduce the C1 cash cost to a lower quartile.
3. OZL could see that the copper part of the business, after capital and exploration actually generates some FCF.
4. The price was NPV positive (after 1 and 2 capital spend and purchase price) for OZL shareholders. TB has shown quite a bit of discipline in not buying for the sake of it or because analysts tell him he should. He has walked away from deals rather than grow the tonnes output of OZL. (mind you, that strategy means OZL pays a divi, has no debt and has over $800m on the bal sheet and can sink an exploration shaft anytime they want).

HT1